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How to Communicate PEO Renewals to Employees

As you navigate your Professional Employer Organization (PEO) renewal packet, a critical aspect of your role involves translating these updates for your team. Communicating changes in benefits, costs, or processes can seem challenging, but that's where your HR superpowers shine.

This guide will offer handy tips to help you communicate these changes effectively, ensuring your team understands what these updates mean for them.

Let's begin our mission!

Know Your Material Inside and Out

Before communicating any changes to your employees, you need to understand them fully yourself.

Digest the Renewal Packet

Study the renewal packet, noting changes in benefits, costs, and processes. This will give you a comprehensive understanding of what's new, what's changing, and what's staying the same.

Clarify Doubts with Your PEO

If you're unsure about anything in the renewal packet, don't hesitate to reach out to your PEO. They can provide additional explanations or clarifications, which can then be relayed to your team.

Break Down Complex Terms

Insurance and benefits jargon can be daunting. It's your role to break this down into language your team will understand.

Simplify and Summarize

Rewrite changes into layman's terms. Use clear, simple language and avoid jargon where possible. Create a summary of the most important changes for easy reference.

Create Comparisons

Show the differences between the old and new terms side by side, making it easier for employees to understand what has changed.

Craft Your Message

With a deep understanding of the changes and a simplified explanation in hand, it's time to craft your communication.

Highlight What's Important

Start by highlighting the most significant changes that will affect your employees. Make sure these points are upfront and clearly emphasized.

Be Transparent

Honesty is key. If costs are going up or benefits are being reduced, be open about it. Provide context to help employees understand why these changes are happening.

Emphasize the Positive

If there are positive changes – such as new benefits or services – make sure to highlight them. This will help to balance any potentially negative news and show employees that there are also improvements.

Choose Your Communication Channels

The way you deliver your message is just as important as the message itself.

Email Updates

An email is a good way to provide detailed updates about the changes. Include your summary of key changes and provide the full details for those who want to dive deeper.

Team Meetings

Consider holding a team meeting to go over the changes. This can be done as a company-wide meeting or department by department, depending on your organization's size. This also allows for immediate questions and answers.

Q&A Sessions

Hold Q&A sessions where employees can ask specific questions about the changes. This will help clear up any confusion and ensure everyone understands what the changes mean for them.

Intranet or HRIS Updates

If your company uses an intranet or a Human Resources Information System (HRIS), post updates there as well. This can serve as a permanent resource where employees can go to review the changes.


As you sail the sometimes stormy seas of PEO renewals, remember:

  • You, the HR champions, are the vital link between the world of benefits, costs, and processes and your team.

  • Your mission is to make the complex simple and the uncertain clear. By knowing your material, breaking down jargon, crafting a clear message, and utilizing effective communication channels, you can ensure your employees understand their benefits landscape.

Happy Renewal Season!

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